scholarly journals Unobserved preferences and dynamic platform pricing under positive network externality

2020 ◽  
Author(s):  
Hannu Huuki ◽  
Rauli Svento
Keyword(s):  
Electricity Market ◽  
Rational Expectations ◽  
Participation Rate ◽  
Network Externality ◽  
Management Service ◽  
Market Demand ◽  
Customer Base ◽  
Unobserved Preferences ◽  
Service Application ◽  
Positive Direct

AbstractWe study the dynamic optimization of platform pricing in industries with positive direct network externalities. The utility of the network for the consumer is modeled as a function of three components. Platform price and participation rate affect the consumer’s decision to join the platform. The platform operator is assumed to know the consumer’s sensitivities with respect to these components. In addition, the consumer’s utility is a function of other attributes, such as network privacy policies and environmental effects of the service. We assume that the distribution of these unobserved preferences in the potential customer base is known to the platform operator. We show analytically how the unobserved preferences affect the dynamic platform price design. Both static and rational expectations with respect to the platform participation are presented. We simulate an electricity market demand side management service application and show that the platform operator sets low prices in the launch phase. The platform operator can set higher launching prices if it can affect customers’ preferences, expectations or adjustment friction.

scholarly journals Household Customers’ Cost of Interruption: Survey Study on Summer Electricity Peak of Xi’an City

2022 ◽  
Vol 9 ◽  
Author(s):  
Yuan Zhao ◽  
Weihua Yu ◽  
Dingwei Guo ◽  
Xiaoping He
Keyword(s):  
Electricity Market ◽  
Contingent Valuation Method ◽  
Participation Rate ◽  
Survey Study ◽  
Household Level ◽  
Carbon Neutrality ◽  
Valuation Method ◽  
Welfare Losses ◽  
New Energy ◽  
Interruption Management

In light of China’s Carbon Neutrality Target and facing the fluctuating pressure of power supply brought on by new energy intermittent power generation, it is urgent to mobilize a large number of residential flexible loads that can respond instantaneously to mitigate peak–valley difference. Under a framework of demand-side management (DSM) and utility analysis, we empirically investigate customers’ costs from interrupting typical electrical terminals at the household level. Specifically, by using the contingent valuation method (CVM), we explore the factors that affect households’ Willingness to Accept (WTA) of voluntarily participating in the interruption management during the summer electricity peak and estimate the distribution of households’ WTA values. We find that given the value of WTA, households’ participation rate in the interruption management significantly decreases with the increase in interruption duration and varies with the type of terminal appliance that is on direct interruption management. Moreover, the majority of households are willing to participate in the interruption management even if the compensation amount is low. The factors that determine households’ WTA and the size of their influences vary with the type of electrical terminal. The results imply that differentiating the terminal electricity market and accurately locking on the target terminals by considering the household heterogeneity can reduce the household welfare losses arising from DSM.

scholarly journals Market prospects for Acadian forest products in the context of future energy availability

2005 ◽  
Vol 81 (6) ◽  
pp. 787-790 ◽  
Author(s):  
Peter Salonius
Keyword(s):  
Energy Production ◽  
Temperate Forest ◽  
Forest Biomass ◽  
Forest Products ◽  
Commodity Markets ◽  
Market Demand ◽  
Forest Species ◽  
Customer Base ◽  
Dimension Lumber ◽  
Expected Increase

As the peak of non-renewable energy production passes during the next forest rotation it is expected that markets, which have recently been driven by pulp and paper and dimension lumber exports, will shrink due to a general decrease in the affluence of the customer base and attrition in its numbers. An expected increase in demand for forest biomass fuels should begin to influence present silvicultural investment decisions now. Emphasis on the production of softwood fibre for commodity markets should yield to emphasis on the restoration of diverse Acadian temperate forest species assemblages. Means of encouraging a shift in harvesting practices in advance of changes in market demand are discussed. Key words: energy scarcity, market alteration, silvicultural investments

scholarly journals Competitive Entry In Ontarios Deregulated Power Generation Industry

2012 ◽  
Vol 10 (2) ◽  
pp. 111
Author(s):  
Xiaoting Wang ◽  
Jun Yang
Keyword(s):  
Electricity Market ◽  
Optimal Number ◽  
Social Optimum ◽  
Market Demand ◽  
Equilibrium Outcome ◽  
Efficient Outcome ◽  
The Social ◽  
The Relationship ◽  
Equilibrium Number ◽  
Number Of Firms

In this paper we investigate the issues involved in the deregulation of an electricity market. The paper focuses on efficiency considerations, comparing the gap between the socially efficient outcome and that achievable by a market. We model this problem with two-sided uncertainty: the uncertain market demand and the uncertain cost of production. In each case, we find the social optimum and the equilibrium outcome of the deregulated market. Conditions when deregulated industry cannot generate the socially optimal number of firms are identified. The relationship between market demand, the degree of risk-aversion of private firms, and the equilibrium number of firms is investigated.

Capturing S-Shape of Pump-Turbines by CFD Simulations Using an Anisotropic Turbulence Model

2019 ◽  
Author(s):  
Ernesto Casartelli ◽  
Luca Mangani ◽  
Armando Del Rio ◽  
Angelika Schmid
Keyword(s):  
Turbulence Model ◽  
Electricity Market ◽  
Vortex Formation ◽  
Model Performance ◽  
Reynolds Stress Model ◽  
Market Demand ◽  
Operational Flexibility ◽  
Transient Conditions ◽  
Sst Turbulence Model ◽  
The Right

Abstract Pump-turbines cope very well with modern electricity-market demand, having high operational flexibility and storage capabilities. Nevertheless, dynamic operation of these machines can lead to very challenging transient conditions, depending on the shape of the characteristic. Mechanical integrity can be correspondingly affected. Therefore assessment of the characteristic during the design phase, i.e. before model testing, is of crucial importance. In the past years different attempts to accurately compute the characteristic under steady (i.e. fix point) and transient conditions have been undertaken using RANS CFD. While the SST turbulence model has become the reference for machine design, it often fails for conditions close to or around instabilities. Its strength to accurately predict separation close to sound conditions (i.e. mild part- and over-load) is no more helpful. Under unstable conditions, which are characterized by continuous unsteady vortex formation, turbulence isotropy as assumed by linear two equation models is no more the right choice. Accordingly a turbulence model able to capture anisotropy, EARSM (Explicit Algebraic Reynolds Stress Model), has been implemented in an in-house code and used for the computation of the characteristic of various machines, stable and unstable, in order to assess the model performance. In this paper computations of three different machines in turbine mode are presented. Results using steady boundary conditions (BC) in the unstable region as well as transient BC like load-rejection and runaway are computed with EARSM, showing its superiority compared to linear two equation models.

Making sense of fashion involvement among Malaysian Gen Y and its implications

2017 ◽  
Vol 5 (4) ◽  
pp. 10 ◽  
Author(s):  
Boon Chui Carol Teo ◽  
Nur Suhaila Nik ◽  
Nurul Fatin Azman
Keyword(s):  
Mixed Methods ◽  
Theoretical Implication ◽  
Market Demand ◽  
Self Identity ◽  
Gen Y ◽  
Customer Base ◽  
Making Sense ◽  
Survey Questionnaires ◽  
Insatiable Appetite ◽  
Fashion Involvement

In keeping pace with globalization of the fashion retail industry, fashion retailers are expanding aggressively across Asia. Malaysia is no exception with clothing market demand expected to double from USD3.6 million in 2011 to USD7 million in 2018. New foreign retail brands have mushroomed to compete alongside local brands to cater to the fashionable aspired yet unique Gen Y. This study dwells into determinants of fashion involvement of Malaysian Gen Y. They appear to have an insatiable appetite for the quick and trendy lines although less interested in logo-centric clothes and want unbranded goods, dressing for self-identity. They have blur distinctions as compared to earlier generations where dressing is seen as a way to fit in. Given their blurring fashion identity, local fashion retailers find it increasingly difficult to understand this ever-evolving customer base. Methodology involved mixed methods with storefront observations and interviews with top local fashion retailer. Using mall intercept approach, Gen Y were sampled via survey questionnaires. Findings were contrary to other studies. Fashion knowledge was the only dominant and significant factor. Local brand confidence, fashion shopping style and patronage behaviour were non-significant predictors. Implications on fashion retailing and theoretical implication on fashion involvement are debated

Artificial Intelligence in Electricity Market Operations and Management

2011 ◽  
pp. 1821-1840
Author(s):  
Zhao Yang Dong ◽  
Tapan Kumar Saha ◽  
Kit Po Wong
Keyword(s):  
Artificial Intelligence ◽  
Data Mining ◽  
Neural Networks ◽  
Time Series ◽  
Electricity Market ◽  
Support Vector ◽  
Market Demand ◽  
Deregulated Electricity Market ◽  
Vector Machines ◽  
Spike Analysis

This chapter introduces advanced techniques such as artificial neural networks, wavelet decomposition, support vector machines, and data-mining techniques in electricity market demand and price forecasts. It argues that various techniques can offer different advantages in providing satisfactory demand and price signal forecast results for a deregulated electricity market, depending on the specific needs in forecasting. Furthermore, the authors hope that an understanding of these techniques and their application will help the reader to form a comprehensive view of electricity market data analysis needs, not only for the traditional time-series based forecast, but also the new correlation-based, price spike analysis.

scholarly journals Effect of Tariff Policy and Battery Degradation on Optimal Energy Storage

Processes ◽  
2018 ◽  
Vol 6 (10) ◽  
pp. 204 ◽  
Author(s):  
Mariana Corengia ◽  
Ana Torres
Keyword(s):  
Energy Storage ◽  
Electricity Market ◽  
Storage System ◽  
Energy Storage System ◽  
Market Demand ◽  
Electricity Pricing ◽  
Battery Degradation ◽  
Energy Consumption Patterns ◽  
Major Disruption ◽  
Promising Solution

In the context of an increasing participation of renewable energy in the electricity market, demand response is a strategy promoted by electricity companies to balance the non-programmable supply of electricity with its usage. Through the use of differential electricity prices, a switch in energy consumption patterns is stimulated. In recent years, energy self-storage in batteries has been proposed as a way to take advantage of differential prices without a major disruption in daily routines. Although a promising solution, charge and discharge cycles also degrade batteries, thus expected savings in the energy bill may actually be non-existent if these savings are counterbalanced by the capacity lost by the battery. In this work a convex optimization problem that finds the operating schedule for a battery and includes the effects of current-induced degradation is presented. The goal is to have a tool that facilitates for a consumer the evaluation of the convenience of installing a battery-based energy storage system under different but given assumptions of electricity and battery prices. The problem is solved assuming operation of a commercial Li-ion under two very different yet representative electricity pricing policies.

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